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Pampa Energia SA (NYSE:PAM)
Beneish M-Score
-4.48 (As of Today)

The zones of discrimination for M-Score is as such:

An M-Score of less than -2.22 suggests that the company is not an accounting manipulator.
An M-Score of greater than -2.22 signals that the company is likely an accounting manipulator.

Pampa Energia SA has a M-score of -4.48 suggests that the company is not a manipulator.

PAM' s 10-Year Beneish M-Score Range
Min: -6.61   Max: 2.82
Current: -4.48

-6.61
2.82

During the past 11 years, the highest Beneish M-Score of Pampa Energia SA was 2.82. The lowest was -6.61. And the median was -2.89.


Definition

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Z-Score) or business trend (F-Score), M-score can be used to detect the risk of earnings manipulation. This is the original research paper on M-score.

The M-Score Variables:

The M-score of Pampa Energia SA for today is based on a combination of the following eight different indices:

M=-4.84+0.92 * DSRI+0.528 * GMI+0.404 * AQI+0.892 * SGI+0.115 * DEPI
=-4.84+0.92 * 1.3895+0.528 * -1.7028+0.404 * 0.7962+0.892 * 1.07+0.115 * 1.143
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.2965+4.679 * -0.1775-0.327 * 1.1441
=-4.48

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

This Year (Sep14) TTM:Last Year (Sep13) TTM:
Accounts Receivable was $234.3 Mil.
Revenue was 185.2912 + 170.28 + 163.589371429 + 157.287314286 = $676.4 Mil.
Gross Profit was 5.50182857143 + -0.458514285714 + 13.0017142857 + -6.66708571429 = $11.4 Mil.
Total Current Assets was $510.6 Mil.
Total Assets was $1,761.1 Mil.
Property, Plant and Equipment(Net PPE) was $961.8 Mil.
Depreciation, Depletion and Amortization(DDA) was $48.8 Mil.
Selling, General & Admin. Expense(SGA) was $159.9 Mil.
Total Current Liabilities was $734.2 Mil.
Long-Term Debt was $438.5 Mil.
Net Income was 10.9253714286 + 35.3932571429 + -44.5834285714 + -11.2638857143 = $-9.5 Mil.
Non Operating Income was 49.3179428571 + 10.9314285714 + -34.6901714286 + -31.1361142857 = $-5.6 Mil.
Cash Flow from Operations was 114.472 + 53.6099428571 + 57.0868571429 + 83.5262857143 = $308.7 Mil.
Accounts Receivable was $157.6 Mil.
Revenue was 163.161714286 + 130.156114286 + 159.108342857 + 179.781828571 = $632.2 Mil.
Gross Profit was -2.79965714286 + -8.85485714286 + -11.8019428571 + 5.3488 = $-18.1 Mil.
Total Current Assets was $418.6 Mil.
Total Assets was $1,472.3 Mil.
Property, Plant and Equipment(Net PPE) was $750.4 Mil.
Depreciation, Depletion and Amortization(DDA) was $43.9 Mil.
Selling, General & Admin. Expense(SGA) was $115.3 Mil.
Total Current Liabilities was $554.4 Mil.
Long-Term Debt was $302.4 Mil.



1. DSRI = Days Sales in Receivables Index

Measured as the ratio of days’ sales in receivables in year t to year t-1.

A large increase in DSR could be indicative of revenue inflation.

DSRI=(Receivables_t / Revenue_t) / (Receivables_t-1 / Revenue_t-1)
=(234.297257143 / 676.447885714) / (157.591428571 / 632.208)
=0.34636409 / 0.24927149
=1.3895

2. GMI = Gross Margin Index

Measured as the ratio of gross margin in year t-1 to gross margin in year t.

Gross margin has deteriorated when this index is above 1. A firm with poorer prospects is more likely to manipulate earnings.

GMI=GrossMargin_t-1 / GrossMargin_t
=(GrossProfit_t-1 / Revenue_t-1) / (GrossProfit_t / Revenue_t)
=(-0.458514285714 / 632.208) / (5.50182857143 / 676.447885714)
=-0.02864193 / 0.01682013
=-1.7028

3. AQI = Asset Quality Index

AQI is the ratio of asset quality in year t to year t-1.

Asset quality is measured as the ratio of non-current assets other than plant, property and equipment to total assets.

AQI=(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t) / (1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
=(1 - (510.554971429 + 961.791885714) / 1761.12651429) / (1 - (418.598971429 + 750.443885714) / 1472.25485714)
=0.1639744 / 0.20595076
=0.7962

4. SGI = Sales Growth Index

Ratio of sales in year t to sales in year t-1.

Sales growth is not itself a measure of manipulation. However, growth companies are likely to find themselves under pressure to manipulate in order to keep up appearances.

SGI=Sales_t / Sales_t-1
=Revenue_t / Revenue_t-1
=676.447885714 / 632.208
=1.07

5. DEPI = Depreciation Index

Measured as the ratio of the rate of depreciation in year t-1 to the corresponding rate in year t.

DEPI greater than 1 indicates that assets are being depreciated at a slower rate. This suggests that the firm might be revising useful asset life assumptions upwards, or adopting a new method that is income friendly.

DEPI=(Depreciation_t-1 / (Depreciaton_t-1 + PPE_t-1)) / (Depreciation_t / (Depreciaton_t + PPE_t))
=(43.8585142857 / (43.8585142857 + 750.443885714)) / (48.8201142857 / (48.8201142857 + 961.791885714))
=0.05521639 / 0.04830748
=1.143

6. SGAI = Sales, General and Administrative expenses Index

The ratio of SGA expenses in year t relative to year t-1.

SGA expenses index > 1 means that the company is becoming less efficient in generate sales.

SGAI=(SGA_t / Sales_t) / (SGA_t-1 /Sales_t-1)
=(159.879657143 / 676.447885714) / (115.250628571 / 632.208)
=0.23635177 / 0.18229859
=1.2965

7. LVGI = Leverage Index

The ratio of total debt to total assets in year t relative to yeat t-1.

An LVGI > 1 indicates an increase$sgai= in leverage

LVGI=((LTD_t + CurrentLiabilities_t) / TotalAssets_t) / ((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)
=((438.475542857 + 734.1984) / 1761.12651429) / ((302.423085714 + 554.409028571) / 1472.25485714)
=0.66586582 / 0.58198627
=1.1441

8. TATA = Total Accruals to Total Assets

Total accruals calculated as the change in working capital accounts other than cash less depreciation.

TATA=(IncomefromContinuingOperations_t - CashFlowsfromOperations_t) / TotalAssets_t
=(NetIncome_t - NonOperatingIncome_t - CashFlowsfromOperations_t) / TotalAssets_t
=(-9.52868571429 - -5.57691428571 - 308.695085714) / 1761.12651429
=-0.1775

An M-Score of less than -2.22 suggests that the company will not be a manipulator. An M-Score of greater than -2.22 signals that the company is likely to be a manipulator.

Pampa Energia SA has a M-score of -4.48 suggests that the company will not be a manipulator.


Related Terms

Altman Z-Score, Piotroski F-Score, Accounts Receivable, Revenue, Gross Profit, Total Current Assets, Total Assets, Property, Plant and Equipment, Depreciation, Depletion and Amortization, Selling, General & Admin. Expense, Total Current Liabilities, Long-Term Debt, Net Income, Non Operating Income, Cash Flow from Operations


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

Pampa Energia SA Annual Data

Jun05Jun06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
DSRI 0.49210.75131.06371.24321.05231.55631.0963
GMI 1.0931.0541.21921.50822.3609-1.0266-1.7461
AQI 1.08390.77041.04442.05530.78030.59691.1507
SGI 2.71351.01981.1891.19571.15050.79681.163
DEPI 0.50331.08850.91450.89781.06331.14611.0583
SGAI 0.88341.14781.06071.031.00281.75811.161
LVGI 1.11490.93571.09661.15431.15641.25171.0045
TATA -0.0633-0.0942-0.0594-0.1359-0.1441-0.0778-0.1315
M-score -1.71-3.19-2.45-2.09-2.39-3.94-4.27

Pampa Energia SA Quarterly Data

Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14
DSRI 0.89311.05510.77491.27441.14681.55211.69771.6971.38951.5224
GMI 1.98322.465412.8615-6.2017-2.2308-0.9831-0.9433-3.0239-1.7028-1.7458
AQI 2.00110.78030.90210.68180.76010.59690.57160.86880.79621.1507
SGI 1.48261.14741.12410.9530.8480.7990.80920.9561.071.163
DEPI 0.92451.52480.91770.81750.78460.79931.03031.11261.1431.0583
SGAI 1.07421.02211.03141.29981.44331.72231.70271.39021.29651.1705
LVGI 1.04421.15641.14771.15581.2291.25171.28791.18741.14411.0045
TATA -0.1075-0.1208-0.1636-0.0616-0.0827-0.0787-0.0739-0.1414-0.1775-0.1358
M-score -1.76-2.172.82-6.61-4.85-3.96-3.76-4.83-4.48-3.90
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